Canaccord Genuity has recently initiated Advantage Solutions Inc (ADV) stock to Buy rating, as announced on December 6, 2023, according to Finviz. Earlier, on May 11, 2023, Morgan Stanley had resumed the stock rating, setting a price target of $3. Deutsche Bank also initiated Hold rating with a price target of $7. Additionally, Goldman reduced Neutral rating on March 4, 2022, with a target price of $7. Morgan Stanley analysts, in their report published on April 1, 2021, also initiated their research coverage and set a price target of $13 for Advantage Solutions Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Sponsored
Advantage Solutions Inc (ADV) Stock Trading Recap
On Monday, Advantage Solutions Inc (ADV) stock saw a decline, ending the day at $3.43 which represents a decrease of $-0.08 or -2.28% from the prior close of $3.51. The stock opened at $3.47 and touched a low of $3.3 during the day, reaching a high of $3.49. The volume of shares traded was 1.14 million exceeding the average volume of 0.81 million.
ADV Stock Performance and Moving Averages
In recent trading, Advantage Solutions Inc (ADV) stock price has shown some volatility, fluctuating -4.72% over the last five trades and -10.21% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -20.05%, and it has gained 9.58% in the previous three months. Currently, ADV is trading at -8.22%, -8.15%, and -9.24% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, ADV, a Communication Services sector stock, is trading -30.71% below its 52-week high but remains 85.41% above its 52-week low. The Average True Range (ATR) (14 days) of 0.21 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Advantage Solutions Inc’s Profitability and Valuation Ratios
Advantage Solutions Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 1.72% and a profit margin of -4.66%, with a gross margin of -20.05%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Advantage Solutions Inc’s market capitalization stands at $1.10 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 7.51. Additionally, the Price-to-Sales Ratio is 0.28, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.1, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 93.31% of Advantage Solutions Inc (ADV)’s shares, while financial institutions hold 21.55%.